Nextracker (NASDAQ:NXT) has officially begun trading and it’s enjoying an impressive start. Since debuting on the Nasdaq this morning, the solar tracking innovator has made a lot of progress. NXT stock closed up by more than 25% for the day. Its debut also marks the first major IPO of the season and may be among this season’s hottest IPOs for the energy sector. CNBC reports:
“The Nextracker IPO is arguably the first meaningful public listing this year as it is set to be the biggest U.S. IPO since autonomous driving firm Mobileye raised $990 million in October.”
Since its trading debut, Mobileye (NASDAQ:MBLY) has performed very well, rising more than 50% in the past six months and attracting positive attention from Wall Street. Now, though, Nextracker could be destined for similar success as we approach what may be a new bull market.
What else should investors know about NXT stock as it kicks off its trading journey? Let’s take a closer look at the tech sector’s newest member.
NXT Stock: What to Know
- Nextracker is a subsidiary of Flex (NASDAQ:FLEX), a multinational electronics manufacturing company domiciled in Singapore. Unlike NXT stock, FLEX closed down by more than 3% today.
- The Nextracker IPO consists of 26.6 million shares priced at $24 apiece. This is expected to generate a profit of roughly $638 million. According to a statement released by Flex, underwriters have a 30-day option to buy up to an additional 3.99 million shares of common stock at the IPO price.
- Seeking Alpha reports that Nextracker proposed a significantly smaller deal last week. Under its original IPO plan, 23.26 million shares would have been priced between $20 and $23, yielding a profit of roughly $500 million.
- An integrated solar tracking player, Nextracker’s tech and software solutions are used in solar energy projects across the globe. Nextracker is ranked among the top companies in its field based on “capacity installed.”
- In addition to selling its solar tracking technology, the company produces energy management software. Demand for solar energy innovations will likely only grow as government institutions increasingly prioritize clean energy initiatives.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.